Minister Thembi Simelane: Strategic planning session of National Home Builders Registration Council

Keynote address by Ms. Thembi Simelane, MP, Minister of Human Settlements on the occasion of the strategic planning session of National Home Builders Registration Council held at Marriot Hotel, Midrand, Gauteng

Programme Director
Deputy Minister, Ms Tandi Mahambehlala 
Chairperson and Members of the Board of NHBRC 
Director General, Dr Alec Moemi
Acting Chief Executive Officer of NHBRC 
Deputy Directors General (DDGs) and Staff 
Ladies and gentlemen

Good day,

It is my singular honour and privilege to address this important Strategic Planning Session of the National Home Builders Registration Council, the NHBRC has played a pivotal role in the home builders’ regulatory environment since its establishment in 1998 in terms of the Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998) as amended, herein referred to as the “NHBRC Act”.

This Council Strategic Planning Session is taking place during August, which is officially known as women’s month in the South African calendar, and I am certain that the critical issues relative to women empowerment, especially in the built environment and the human settlements value chain will be of utmost priority.

This will be in honour of the generation of the brave women of 1956, who unwaveringly and relentlessly confronted apartheid and its repressive laws. We salute Lillian Ngoyi, Helen Joseph, Rahima Moosa, and Sophia Williams-DeBruyn, whom the historic march they led became the pivotal moment in the struggle against apartheid, and most importantly it served as a symbol of unity and strength of women in the fight for freedom and equality.

The mandate of the NHBRC is to protect the interests of housing consumers by ensuring that quality houses are built, to regulate the home building industry by enforcing ethical and technical norms and standards, to promote innovative technology in the housing sector and promote compliance and capacity building of home builders (builder training and development).

The entity is also tasked to support the housing sector with geotechnical engineering services and forensic engineering investigations, litigation and advisory services. The NHBRC achieves its mandate through registrations, enrolments, inspections, training, warranties, and dispute resolutions.

We must be unwaveringly consistent in executing this this task and avoid the incidences like the George Building collapse, a painful incident that claimed 34 lives and left several people injured in May 2024.

Earlier this year, we briefed the media detailing findings and recommendations contained in a report initiated by the Council following the George Building collapse incident. This was after the NHBRC, in line with its mandate to regulate South Africa’s home building industry, initiated an investigation to understand the factors that resulted in the collapse of a residential building that was still under construction.

As you may be aware, the investigation made adverse findings, even implicating some of the officials within the Entity. The affected officials are being held accountable. Accordingly, some officials have been suspended pending disciplinary actions. They will face several charges, including dereliction of duty, misconduct, negligence, dishonesty, and misrepresentation in official inspection reports.

Council must ensure consequence management relative to this matter takes place without fear or favour. We must leave no stone unturned in holding our officials accountable. I have full confidence in Council that it will fully implement the recommendations of the report.

The 7th administration has enjoined us in one of its three strategic priorities to build a capable, ethical and developmental state.

The NHBRC has performed well historically against the achievement of performance targets, achieving 89% in the 2022/23 financial year, 79% in the 2023/24 financial year and the pre-audit performance result for the 2024/25 financial year is indicating 85%.

The recently completed End Term Report on the implementation of the 2020-2025 Strategic Plan shows that while the NHBRC achieved notable outcomes—such as training 42,467 homebuilders and technical professionals against a target of 32,000 and resolving 100% of structural defect disputes within 90 days, it faced challenges in meeting home inspection targets. Of the 575,000 planned inspections, only 207,054 were completed due to lower-than- expected post-COVID construction activity. In this regard, the NHBRC must ensure that all enrolled houses are inspected and that the inspectors are properly trained to perform the risk.

The Council also prioritised stakeholder engagement through the full implementation of its communications plan, coupled with targeted activation drives and increased media visibility. Although the targeted Stakeholder Satisfaction Index of 80% was not achieved, efforts to rebuild trust and awareness post-pandemic were evident.

While the NHBRC maintained its unqualified audit status, it did so with material findings, reflecting room for improvement in internal control systems. The entity achieved 100% of home enrolments within 15 days.

However, low enrolment volumes in the 2024/25 financial year reflects broader sectoral weaknesses, including economic stagnation and high construction costs.

Nonetheless, compliance enforcement improved through more timely disciplinary processes and expanded digital service channels. The entity must continue to strengthen compliance oversight as part of the housing consumer protection role.

The entity must continue to support the transformation agenda through the procurement expenditure on designated groups as well as the training of women, youth, people with disabilities.

Further, the President outlined that these priorities will be translated and unpacked within the 2024-2029 Medium Term Development Plan (MTDP) which set out the goals, interventions, and targets in support of the strategic priorities.

The Department is aligned with the 2024-2029 MTDP by pursuing the reduction of poverty and improved livelihoods. This will be achieved through the development of liveable neighbourhoods both in rural and urban environments and by achieving spatial transformation and increased access for adequate housing through various programmes.

The Human Settlements 2024-2029 MTDP targets are as follows:

Item Sector Approved Targets
Housing units 237 000
Serviced sites 314 000
Social housing 15 000
Tenanting and collection rates 95% tenanting and at least 90% collection rate
Affordable housing 140 000
Informal settlements 4 075
Title deeds Registration of 80 000 title deeds for households in all 9 provinces
Master/ comprehensive plans developed, institutionalised and implemented 8 metros / 23 Districts

For the Sector to plan and achieve its targets the NHBRC is expected to play a critical role which includes:

  • Validate and report on the readiness of housing Development projects
  • Ensure all housing development projects are enrolled.
  • Enrol and inspect social housing projects.
  • Technical assessments for the unblocking of blocked projects in the Sector.
  • Enrol and inspect that buildings are designed and constructed according to prevailing regulations as well as norms & standards.
  • Implementation of Consumer Protection Programmes.

Furthermore, NHBRC must ensure that all homes built meet minimum quality standards, protecting housing consumers from unsafe, defective, or sub-standard housing. As a shareholder and Executive Authority recognises compliance management as non-negotiable in pursuit of safe, sustainable, and dignified housing for all South Africans. I must therefore emphasise that The NHBRC must:

  • Strengthen inspection, enforcement, and sanctioning mechanisms.
  • Enhance transparency in compliance reporting.
  • Conduct regular training and outreach to builders to improve understanding of norms and standards.
  • Act decisively against any form of regulatory non-compliance or malpractice as a regulator.

In line with the guidelines from DPME’s Revised Framework on Strategic Plans and Annual Performance Plans, NHBRC Corporate Plans must include a summary of key risks (Strategic Risks) which may affect achievement of the identified outcomes and describe measures which will be taken to mitigate identified strategic risks.

It is important for the entity to integrate strategic risk management into the corporate plans of the NHBRC to ensure effective regulation of the home building industry in line with national norms and standards.
Linking risks to the corporate plans allows Executive management, the Board, and National Department to monitor both performance and risk exposure in an integrated manner.

Your risk register will serve as a robust internal control ensuring strategic risk integration allowing early identification of potential risks to the NHBRC’s ability to deliver on housing quality and consumer protection, strengthens governance, improves service delivery, and upholds the technical norms and standards essential for building safe and sustainable homes in South Africa.

Once again, let me express my sincere and profound appreciation for the opportunity to address this Strategic Planning Session, and I wish you all the best in your deliberations.

I thank you.

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